Stock of this real estate company zoomed 75% in 15 days; hits 16-yr high

Shares of real estate firm Puravankara locked in upper circuit of 10 per cent at Rs 324.30, hitting 16-year high on the BSE on Friday at 12:11 pm; with only buyers seen on the counter. In the past 15 trading days, the stock of the real estate developer zoomed 75 per cent. In comparison, the S&P BSE Sensex was down 0.28 per cent at 74,826.

Shares of Puravankara are trading at its highest level since April 2008. It had hit a record high of Rs 535 on December 13, 2007, data shows. A combined 2.06 million equity shares have changed hands and there are pending buy orders for around 4,50,000 shares on the NSE and BSE.

 

In past five trading days, the stock price of Puravankara has appreciated by 40 per cent after the company achieved its best-ever quarterly performance with a pre-sales value of Rs 1,947 crore (over 93 per cent YoY, 57 per cent QoQ) in March 2024 quarter (Q4FY24) while pre-sales grew 90 per cent to Rs 5,914 crore in FY24. Customer collections increased by 60 per cent YoY to Rs 3,609 crore. The company said it achieved the highest-ever collections in FY24.

With successful new launches and an optimistic outlook for upcoming projects, the management said the company is now focused on replenishing its inventory with new land acquisitions.

On outlook, Puravankara said, as per a National Real Estate Development Council (NARDECO) report, India's real estate sector is projected to grow at a CAGR of 18.7 per cent from 2020 to 2030. The trajectory, moving from a market size of USD 180 billion in 2020 to a projected USD 1 trillion by 2030, is fuelled by a growing economy, thereby increasing incomes and moving more and more Indians into higher social strata.

A stable interest rate and controlled inflation will bolster economic prospects. The surge in demand for residential real estate, mirrors increased economic activity and rising income in 2023 strong interest from both foreign institutional investors and domestic institutional investors boosting India’s global index rate. Political stability and ongoing economic reforms position India as the fastest growing major economy.

Further, the RBI Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6.50 per cent, as it has done for all of FY 23-24 and persevered with the stance of withdrawal of accommodation. The FY24 inflation forecast remains steady at 5.4 per cent, reflecting an optimistic economic outlook. The company said it remains poised to capitalise on India's economic opportunities.